Questions & Answers
Would a promotion offered with less salary be considered constructive dismissal?
Hello,
I am originally from the UK and relocated to Dubai in 2004 when my company established a new office.
I originally joined the same company in 2001, based in the London office. Since then, I have grown with the organization and am in a middle management role.
Recently, the company announced they would downsize the Dubai office, and affected staff would be offered to relocate back to an office in their home country (India) or to the new office being established in Spain.
I have been advised that my present role will be made redundant in Dubai but have been offered a new role in Spain. The new role is seen as a promotion but there are little to no benefits and it's a major drop in salary (basic salary would drop by 40%).
There are no additional allowances. Currently, I receive basic salary + allowances.
I have been in the UAE since 2004 and my options appear to be limited to accept redundancy or a new role with a significant drop in salary. Would this be considered constructive dismissal?
Dear Questioner,
You have the right to accept or reject the new offer.
In the event of rejection and the company terminated your work due to the lack of need, you must send an e-mail explaining the reasons for not accepting the new offer, and in that case, if the company terminated your services, you will be entitled to demand an arbitrary dismissal allowance, which is limited to 3 months salary allowance according to the labor law, but the matter will be according to the discretionary authority of the judge.
That is according to Federal Law No. (8) of 1980 Concerning the Regulation of Labor Relations Article No. (122), Article (123).
Kindly contact us directly for a detailed discussion on your issue.
Regards,
Mostafa AL Saeed
"This Resolution shall be published in the Official Gazette and shall come into force as of its date of issuance (March 26, 2020)."
Therefore, your employer may reduce your salary from April 1 if you consent to a reduction in your salary effective April 1 by signing a "Temporary Additional Addendum" to your original employment contract.
You may approach your employer and come to a consensus related to terms of reduction of your salary for the Covid-19 crisis period.
However, in the event your employer does not adhere to the provisions mentioned in the Ministerial Resolution and decides to reduce your salary without mutual agreement with you, then you may file a complaint against your employer with the MoHRE.
Hi,
Unless the company has strong evidence on the loss and restructuring necessity, it shall be considered unfair dismissal, and considering your long time of work, you may be granted the maximum compensation of three months.
It's also important to ensure that you are receiving your full end of service entitlements and we can assist in the calculation.
For further advice, you can call me.
Sayed
